A token, in general, is an object that represents something else, such as another object (either physical or virtual), or an abstract concept, such as a gift, which is sometimes referred to as a token of the giver's esteem for the recipient. Tokens come in a variety of forms in computers.

In the realm of cryptocurrency, tokens represent digital assets built on existing blockchain platforms, like Ethereum, Binance Smart Chain, or Solana. Unlike cryptocurrencies such as Bitcoin or Litecoin, which operate on their own native blockchains, tokens are created through smart contracts on these platforms.

Crypto tokens serve diverse functions. Some tokens act as utility tokens, granting access to specific features or services within decentralized applications (DApps). Others serve as security tokens, representing ownership stakes in real-world assets or companies, often subject to regulatory compliance.

Moreover, there are also governance tokens, which confer voting rights and influence over decisions within decentralized autonomous organizations (DAOs) and protocols.

Tokens facilitate a wide range of activities, including fundraising through Initial Coin Offerings (ICOs) or Initial Exchange Offerings (IEOs), liquidity provision on decentralized exchanges (DEXs), and participation in decentralized finance (DeFi) protocols.

Overall, tokens in crypto embody a dynamic ecosystem, enabling innovation, democratization of finance, and the creation of decentralized economies.